Principles of the DSU: 1) principle of good faith: Members must exercise their judgement as to whether action under DSU would be fruitful (art. 3, para.

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Presentation transcript:

Principles of the DSU: 1) principle of good faith: Members must exercise their judgement as to whether action under DSU would be fruitful (art. 3, para. 7); Members must engage in dispute settlement procedures in an effort to resolve the dispute (art. 3, para. 10).

Principles of the DSU (II) 2) preservation of third Member States’ rights: solution of disputes shall not nullify or impair benefits accruing to any Member (art. 3, para. 5); mutually agreed solutions must be notified to DSB and any Member may make observations (art. 3, para. 6).

Principles of the DSU (III) 3) burden of proof: the complaining State must give evidence that there has been a breach of WTO law but the damage is presumed, unless the defendant State can rebut the charge.

Principles of the DSU (IV) 4) consequences of the breach: when there is a breach of WTO law, the defendant State must withdraw the measure, or, if it is temporarily impossible, to give a compensation; only when the defendant State doesn’t withdraw the measure, the DSB can authorize the complainant State to suspend the concessions towards the defendant State (retaliation).

Features of the DSU A single and coherent system of rules and procedures for dispute settlement; existence of special rules in some Multilateral Agreements. Compulsory jurisdiction for complaining Member and for respondent Member; Exclusive jurisdiction; Contentious jurisdiction.

Access to the dispute settlement system Only Members may accede to the WTO dispute settlement system. Government-to-government dispute settlement system. Private companies often lobby their governments in order to induce them to start proceedings under DSU.

Amicus curiae Faculty to submit written briefs to panels and Appellate Body. Who can submit? 1)Individuals; 2)Private companies; 3)Governmental and non-governmental organisations; 4)Members.

Amicus curiae (II) Appellate Body ruled that panels are entitled to accept and consider amicus curiae briefs (US-Shrimp, EC-Sardines). It adopted an Additional Procedure in order to deal with amicus curiae briefs and set forth requirements for such briefs. Panels are not obliged to consider amicus curiae briefs and private parties have no legal right to be heard.

Amicus curiae (III) Member States strongly dissent from the view of the Appellate Body about amicus curiae briefs, because: 1)Amicus curiae briefs can contribute to the length of proceedings; 2)Developing-country Members feel that amicus curiae briefs are often opposed to their interests. General Council have been unable to adopt clear rules about amicus curiae briefs thus far.